Study on Indian Apparel Industry

India’s textile-apparel industry to touch $223 bn by 2021: Ficci Mumbai: India’s total textile and apparel industry size both domestic and exports are projected to grow at a cagr(CAGR is often used to describe the growth over a period of time of some element of the business) of 9. 5 percent to reach $223 billion by 2021 from the $89 billion in 2011, according to a white paper by industry body Ficci and research firm Technopak. India’s total textile and apparel industry size is estimated at $89 billion in 2011 and is projected to grow at a CAGR of 9. 5 percent to reach $223 billion by 2021. “The domestic textile and apparel market in India is worth $58 billion and has the potential to grow at a CAGR of 9 percent, to reach $141 billion by 2021,” the white paper on ‘Challenges in Textile and Apparel Industry’ said. growing at an annual rate of 10 percent since 2005. The global share of the textile industry was 4. 5 percent in 2011 and is expected to be 6 percent in 2016 and 8 percent in 2021. Globally, the apparel industry is expected to grow at a CAGR of 6 percent. Pest Restoration of zero excise duty on labeled apparels will enable new investors to enter into the garment sector Removal of excise duty on garments is a major boost to the textile industry as a whole, since it will help in increasing the demand for clothing and fabric.

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Rationale: Tier II and III cities offer a number of attractions for businesses such as talent pool at a lower cost, sizeable and economical land and real estate options, and conducive business environments created by state and local governments. Eg. Ahmedabad and Visakhapatnam attracting 39 percent and 32 percent of all investment. Top e-commerce sites eg Jabong & Myntra report 50 pc sales from tier-2 and tier-3 cities

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